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Eneliko Company installs home theater systems. The...

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Eneliko Company installs home theater systems. The company?s most recent monthly contribution format income statement appears below: Amount Percent of Sales Sales $ 120,000 100% Variable expenses 84,000 70% Contribution margin 36,000 30% Fixed expenses 24,000 Net operating income $ 12,000 Required: 1. Compute the company?s degree of operating leverage. Degree of operating leverage 2. Using the degree of operating leverage, estimate the impact on net operating income of a 10% increase in sales. (Input the amount as a positive value. Omit the "%" sign in your response.) Net operating income (Click to select)increasesdecreases by % 3. Complete the new contribution format income statement for the company assuming a 10% increase in sales. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.) Contribution Income Statement ?

 

Paper#9387 | Written in 18-Jul-2015

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